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Question
Calculate National Income and operating Surplus from the following data:
| PARTICULARS | (₹crores) | |
| (i) | Government final consumption expenditure | 900 |
| (ii) | Net factor income from abroad | 210 |
| (iii) | Private final consumption expenditure | 1000 |
| (iv) | Net domestic capital formation | 300 |
| (v) | Profits | 320 |
| (vi) | Rent | 190 |
| (vii) | Net exports | (-) 75 |
| (viii) | Interest | 200 |
| (ix) | Net indirect taxes | 265 |
Solution
National income and operating surplus using expenditure method:
GDPmp = Private final consumption expenditure + Government final consumption expenditure + Gross domestic capital formation + Net Export.
= 1000 + 900 + (300 + 0) + (−75) = ₹2125 crores
NNPfc = GDPmp − Depreciation+ NFIA - NIT
= 2125 − 0 + 210 − 265 = ₹2070 crores
Operating surplus = Rent + Interest + Profits + Royalty
= 320 + 190 + 200 + 0 = ₹710 crores.
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